Jun 09, 2017 07:48 AM IST | Source:

Buy Atul Auto; target of Rs 550: Systematix

Systematix is bullish on Atul Auto has recommended buy rating on the stock with a target price of Rs 550 in its research report dated May 16, 2017.

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Systematix's research report on Atul Auto

Atul Auto (ATA) reported 4QFY17 results, with revenue being slightly higher than our estimate (+2%) although results were disappointing at the operating level as EBITDA and PAT were below our expectation(5%/10%). Realisation for the quarter increased 2% qoq to Rs 123,172 (flat yoy). This quarter’s performance was marred by the demonetisation impact, as the rural economy is yet to completely recover.


Valuations appear reasonable, considering the 28% earnings CAGR over FY17-20e, excellent return ratios, healthy dividend payout history and debt-free status. We maintain a Buy rating with a revised target price of Rs 550 (18x FY19e EPS) (Rs575 earlier).

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